Chapter 7 Riverside Bankruptcy Trustee Arturo Cisneros
As mentioned in a previous post, Riverside Bankruptcy Trustee Arturo Cisneros suggests to all attorneys to take the full amount of the Homestead exemption that the client is entitled to take. This helps the debtor and helps the Trustee as well. (See The post of September 5, 2013.)
One of the things that Trustee Cisneros does not like is when the “Cost of Sale” calculations are taken on the Schedules “A” and or “D”. Some attorneys will write on the schedules the value of the real property, less the hypothetical 8% “cost of sale” that a real estate agent will charge the bankruptcy estate to sell the property. This 8% may then be an amount that lowers the equity in a property. The Trustee uses a similar number to make his or her analysis on whether there is equity left in a property to administer the asset for the benefit of the estate.
Mr. Cisneros does not like this number or calculation to be written into the petition. I do not know exactly why this is so, but I have a theory. One reason he might not like that number or percentage taken is that it tends to make the value of the real property not clear to a third party reviewing the petition. So for the sake of a clean records, Mr. Cisneros may not want the calculations included. The petition asks for the value of the real property and that is what should be in the schedules.
When listing the value of real property, list the full value of the real property without any cost of sale deducted. This will make a clear record and will help when the exemption amount is taken. This again helps the debtor and it also helps the trustee as it is clear what is claimed as value and what is claimed as the exemption amount..